Wednesday, April 02, 2003

Timing is everything, Virginia tobacco commission learns

The bond deal by which Virginia sold its revenue stream from the tobacco settlement has been declared off because Philip Morris/Altria says it cannot make its next payment as a consequence of the $12 billion judgment against it in Illinois, according to this report. The closing was scheduled for Thursday of this week. In a Richmond Times article, the state agency involved with the sale said hopefully that the closing is "on hold." This Reuters article quotes one financial expert as stating the opinion that there would be no more tobacco bond sales until the Illinois appeal bond issue is resolved. Meanwhile, the Illinois attorney general vowed to sue if the tobacco payment is not made on time, as reported here.

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